Each order placed must have a product code and an order type. Let us see the different product codes and order types.
1. MIS applies to all intra day positions you take while trading in securities in any segment. It stands for Margin Intraday Square-off. If you do not square off the positions taken under MIS on the same day, the system will automatically square off the same from 30 min before closing of market hours. Call N trade charges would be charged for these system auto square off trades.
2. CNC stands for Cash and Carry and is the product used for delivery / carry forward based trades. For these stocks in Rocket Trading platform you get 2 times delivery leverage or you need to provide only 50% margins. For the rest of stocks margin requirement is 100% of the value. To sell stocks in your DP account using CNC no margin is required.
Listed below are the products available for the trading and the Exposure / margin required for trading in various segments of the exchanges for both delivery / carry forward & Intraday.
|Products || Type || Exposure / Margins - Equity||Margin – Equity Futures / Options selling||Margin – Currency Derivatives||Margin – Commodity Futures / options selling||Margin – Equity / Commodities options BUY|
|MIS (Margin intra-day square off)|
Intraday with auto square off
50% of exchange margins on underlying stocks that have derivatives
50% of Exchange margins
50% of Exchange margin
50% of Exchange margin
100% of Premium Value
|CNC (cash and carry) - |
Delivery / carry forward
Normally 100% of Value of Purchase except for
selected stocks on which margin is 50% of value of Purchase
100% of Exchange margins
100% of Exchange margins
100% of Exchange margins
100% of Premium Value
Any order placed under MIS will automatically be squared off within half an hour before the market closes for respective exchange segments or the Intraday MTM reaches 80% whichever is earlier. To read our complete risk management policy click here.
Stocks bought under CNC product in Rocket using 50% margins will be delivered to the Client unpaid securities account (CUSA account) if sufficient credit is not available in client ledger for value of trades. Stocks in CUSA account cannot be held by the broker beyond 7 trading days from the trade date.
You can change your positions from MIS (Intra) product to the NRML /CNC (Carry forward product). However, this can be done only if you have sufficient margins for the Carry Forward position. The change of position needs to be done atleast 30 minutes before market closing time or before the time based auto square off gets triggered.
You can also change NRML positions to MIS. You cannot however do this once the auto square off process is started.
Navia offers trading only in the non agri products in MCX exchange and agri products are not allowed for trading in the Commodities trading platform offered by Navia. Further in the non agri segment Navia does not allow for delivery of contracts and the same is restricted in the system.
* SPAN,ELM, ADDHOC and MTM as levied by the exchange
Terms and Conditions Options Intra-day product:
1. Premium received on option selling will not be considered for further trading in any other segments.
2. Stocks in DP with pledge can be used as margin for Equity Options selling. The value of such stocks after haircut would be limited/restricted and this limit could vary from time to time.
3. Any MTM shortfall arising as a result of Equity Options Trading loss by using DP Pledge based margin , such loss/debit needs to be transferred by the client on Trade day itself, else DP pledged stock to the extent of loss/debit amount would be unpledged and sold anytime from Trade date+1.
Limit Orders : A limit order allows you to buy or sell a stock at the price you have set or a better price. In other words, if you place a buy limit order at Rs 100, you want to buy the stock from the exchange only at Rs 100 or lower. You don't want to pay more than Rs 100. Similarly, if you place a sell limit order at Rs 105, you want to sell the stock at Rs 105 or higher. The advantage of placing a limit order is that you can place buy/sell order at the desired price. However, there is a chance that your order may not get filled partially or completely depending upon if a counter order is available for some quantity or none at the price you’ve specified.
1. Any Limit orders placed will be checked against the daily price range of that security. If the limit order is below the lower end of the daily price range or above the higher end of the daily price range, then such limit orders may be rejected by the system.
2. Your limit order will get executed as a market order if for your -
Buy limit order: limit price is more than the best offer price
Sell limit order: limit price is less than the best bid price
Market Orders: A market order allows you to buy or sell a stock at the best available price. If you're placing a buy market order, you want to buy a specified quantity of stock from the exchange at any price available. Similarly, if you're placing a sell market order, you want to sell your stock at any price buyers are willing to give. The advantage of market orders is that your trade will execute as soon as it reaches the exchange if there are willing counterparties i.e. buyers for your sell market order or sellers for your buy market orders. However, the instant order execution comes at the cost of slippage (which means you could be paying slightly more money to buy or getting slightly less money to sell your stocks).
Stop Loss Orders: A stop-loss order is a buy/sell order placed to limit the losses when you fear that the prices may move against your trade. For instance, if you have bought a stock at Rs 100 and you want to limit the loss at 95, you can place an order in the system to sell the stock as soon as the stock comes to 95. Such an order is called 'Stop Loss', as you are placing it to stop a loss more than what you are ready to risk.
There are 2 types of Stop-Loss orders:
1. SL order (Stop-Loss Limit) = Price + Trigger Price
2. SL-M order (Stop-Loss Market) = Only Trigger Price
Case 1 > if you have a buy position, then you will keep a sell SL
Case 2 > if you have a sell position, then you will keep a buy SL
In Case 1, if you have a buy position at 100 and you wish to place an SL at 95.
a. SL-M order type - You will place a Sell SL-M order with trigger price = 95.
Here, when the price of 95 is triggered, a sell market order will be sent to the exchange and your position will be squared off at market price.
b. SL order type - You will place a Sell SL order with price and trigger price. Since your order needs to be triggered first, the (trigger price ≥ price.) Here, this order type gives you a range of the Stop-Loss.
Let's assume a range of Rs 0.10 (10 paisa). Here, you can keep trigger price = 95 and price = 94.90. When the price of 95 is triggered, the sell limit order is sent to the exchange and your order will be squared off at the next available bid above 94.90. So, your SL order may get executed at 95 (or higher) or 94.95 but not below 94.90.The disadvantage of this order is that if the market falls steeply, then after 95 is triggered and before the Sell Limit order of 94.90 is sent to the exchange if the stock price is already below 94.90, then your Stop-Loss order will still be open and your losses could be much higher.
You will have to use your discretion whether to use SL or SL-M depending on the market scenario.
In Case 2, if you have a sell position at 100 and you wish to place an SL at 105.
a. SL-M order type - You will place a Buy SL-M order with trigger price = 105.
Here, when the price of 105 is triggered, a buy market order will be sent to the exchange and your position will be squared off at market price.
b. SL order type - You will place a Buy SL order with price and trigger price. Since your order needs to be triggered first, (the trigger price ≤ price.) Here, this order type gives you a range of the stop-loss.
Let's assume a range of Rs.0.10 (10 paisa). Here, you can keep trigger price = 105 and price = 105.10. When the price of 105 is triggered, the buy limit order is sent to the exchange and your order will be squared off at the next available offer below 105.10. So, your SL order may get executed at 105.05 or 105 but not above 105.10.
Alternate use of SL order:
Since Sell SL orders are used above your buy price and Buy SL orders are used below your sell price, you can use these order types to Buy above LTP (Last Traded Price) and Sell below LTP.
1. To buy above LTP, you can place a Buy SL order with the price at which you want to buy.
2. To sell below LTP, you can place a Sell SL order with the price at which you want to sell.
You can place orders for the next trading day using the AMO feature on Rocket. This is especially helpful for people who can’t actively track the markets during the live session - 9:15 am to 3:30 pm.
IOC (Immediate or Cancelled) allows a user to buy or sell a security as soon as the order is released into the market, failing which the order will be removed from the market. Partial match is possible for the order, and the unmatched portion of the order is cancelled immediately. IOC orders are only used when placing orders in very large quantities.
The GTC order is more popular among savvy commodity traders and hedgers who are willing to wait longer to get the price of their choice. This GTC order will be open till the time the trader placing the order actually cancels the order or the order gets automatically executed. Remember, all GTC orders will automatically stand cancelled on the expiry date.